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Mutual Termination Letter Template for Denmark

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Mutual Termination Letter

Document background
The Mutual Termination Letter is used in situations where both the employer and employee agree to end their employment relationship by mutual consent, rather than through unilateral termination. This document is particularly relevant in the Danish employment context, where there is a strong emphasis on consensus-based employment relations. It provides a clear framework for documenting the agreed terms of separation, including the termination date, final salary payments, treatment of benefits, and any post-employment obligations. The letter helps ensure compliance with Danish employment law requirements while maintaining professional relationships and minimizing the risk of future disputes. It's especially useful in scenarios involving amicable separations, corporate restructuring, or when parties wish to agree on terms that differ from standard notice periods.
Suggested Sections

1. Date and Address Block: Formal letter heading including both parties' full names and addresses

2. Subject Line: Clear indication that this is a mutual termination letter

3. Confirmation of Mutual Agreement: Statement confirming both parties have agreed to terminate the employment relationship

4. Employment Details: Brief reference to the current employment (position, start date)

5. Termination Date: Clear statement of the agreed last day of employment

6. Final Salary and Benefits: Overview of final payment including regular salary, accrued holiday pay, and other standard benefits

7. Company Property: Statement regarding the return of company property

8. Confidentiality Obligations: Reminder of ongoing confidentiality obligations

9. Signature Block: Space for both parties to sign and date the letter

Optional Sections

1. Severance Payment: Include when additional severance pay has been negotiated

2. Reference Letter: When parties have agreed on the provision of a reference letter

3. Non-Compete/Non-Solicitation: If existing restrictions need to be addressed or modified

4. Outstanding Bonus/Commission: When there are variable compensation elements to be settled

5. Share Options/Programs: If employee participates in any share schemes requiring attention

6. Pension Arrangements: When special pension considerations need to be addressed

7. Release Clause: Mutual release of claims when agreed between parties

Suggested Schedules

1. Final Payment Calculation: Detailed breakdown of all final payments including salary, holiday pay, and other benefits

2. Company Property List: Itemized list of company property to be returned

3. Benefit Continuation Schedule: If applicable, details of any benefits continuing post-employment

4. Share Option Statement: If applicable, detailed statement of share options and their treatment

Authors

Relevant legal definitions














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Relevant Industries
Relevant Teams
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Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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